Noranda to settle US$19 million debt over three years

Finance Minister, Audley Shaw, has indicated that the new owners of Noranda bauxite in St Ann will payout US$19 million owed to Jamaica over the next three years.

According to Shaw, the transfer of ownership of Noranda to New Day Aluminum has been seamless.

The Jamaican Government has partial ownership in the company and has signed a 25-year agreement with New Day.

Speaking at a function in Manchester on the weekend the finance minister said through very careful negotiations, the government was able to ensure that Noranda honour its monetary obligations to Jamaica.

Under the takeover arrangement, the Government will be abandoning the Bauxite Levy in favour of a profit-sharing arrangement with New Day.

Shaw says this will see Jamaica sharing 17 point three per cent ownership in New Day’s parent company, DADA Holdings LLC.

Meanwhile, the finance minister indicated that plans are on track with the new owners of Alpart for the resumption of full bauxite operations.

He said details of upgrading work at the plant in Nain, St Elizabeth, are being finalised.

The new Chinese owner, Jinquan Iron and Steel Company, bought Alpart from Russian company UC Rusal for US$300 million, with plans to invest US$2 billion over five years.

Shaw says UC Rusal has indicated very strong interest in the reopening of Kirkvine in Manchester.